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American Water to Merge With Essential Utilities in $63 Billion All-Stock Deal

Executives say added scale will help fund infrastructure upgrades, meeting growing demand from large users.

Overview

  • Essential shareholders will receive 0.305 American Water shares per share, leaving American Water holders with about 69% ownership and Essential holders with roughly 31% of the combined company.
  • The merged utility will manage approximately 4.7 million water and wastewater connections across 17 states and 18 U.S. military installations under the American Water name.
  • John C. Griffith will lead as president and CEO, with Essential’s Christopher H. Franklin becoming executive vice chair, and the headquarters will remain in Camden, New Jersey.
  • Management expects first-year EPS accretion and reaffirms a 7%–9% long-term EPS growth outlook, while stating no merger-related changes to customer rates or union contracts.
  • Closing is targeted by the end of the first quarter of 2027 pending shareholder and multi-jurisdictional regulatory approvals, with a post-close review of non-water assets including a potential sale of Peoples Natural Gas.